Debt is one of the biggest causes of stress and misery you can come across. It hangs on you like a bad stink and getting rid of it can feel like an impossible challenge. It usually takes years to clear even the smallest of loans. Some, like credit cards and student loans, charge compound interest. That means you’re paying interest on the interest. It’s a vicious cycle. Let’s face it – we all have to borrow at some point in our lives. But how far are you willing to go to ditch the debt that comes with it?
Borrow From Mom & Dad
It seems that there is an entire generation of people that have done pretty well for themselves. With no mortgage to pay, and no need to borrow any more, the bank of mom and dad might be the perfect place to negotiate a little financial help. In reality, of course, this generation is now in retirement. The savings and investments they have must cover their costs as they reach their twilight years. And that sum is unknown at this point. Besides, who wants to have to go running back to their parents when they left home a decade ago?
Take Out More Loans To Pay Off The Original Loan
Plenty of lenders out there are quick to offer you a consolidation loan, a refinancing a loan, or a debt solution loan. No matter what they call it, they will still want you to pay that money back with interest. It’s a loan, so it’s another debt! Of course, this type of refinancing might actually cost you less. It’s worth checking the figures. If you can clear it quicker for a lesser overall cost, then you might consider it.
Apply For Bankruptcy
If you’ve been struggling to meet all your bills lately, then things might be becoming a little dire. Paying a loan repayment a little late once or twice a year is one thing. Borrowing money to buy food because you no longer earn enough for all your commitments is something else. Bankruptcy is often seen as the last resort because it can impact your credit rating for life. If you’re looking for an affordable bankruptcy service to ask advice, then you are probably at that point. No creditors can chase you anymore, and most of your debts could be written off with nothing more to pay if you use a bankruptcy service.
Take Another Job To Pay It All Off Quickly
If you’re worried about ruining your credit rating, then you might try to find a second job to boost your income instead. After all, there will come a time when you want that super low-interest rate mortgage. Work hard and clear those loans. Then you can work on building up your savings account.
Sell Everything You Own
Nobody wants to sell their jewelry or high-tech gadgets. After all, you bought it because you wanted it. But if you have high-value items and a lot of debt, maybe it’s time to strip things back to basics. How far would you go to ditch your debt?